Insights on corporate risk and how companies are tackling it.

Legal Fights Loom Over State Laws Targeting Iran

When Congress expanded U.S. sanctions on Iran in 2010, it authorized states to blacklist companies that have business interests with that country.

But a legal fight over a highway bridge contract in New Jersey shows just how tricky it can be for states to manage their own sanctions policy.

Buried deep in the Comprehensive Iran Sanctions, Accountability and Divestment Act was a section that allowed statehouses to draw up lists of companies with business ties to Iran’s energy sector and prohibit them from entering into contracts with state and local governments. Since then, New York, New Jersey and other states have passed Iran divestment laws.

Under the ASU, inventory is “measured at the lower of cost and net realizable value,” which eliminates the need to determine replacement cost and evaluate whether it is above the ceiling net realizable value or below the floor. The FASB did not amend other guidance on measuring inventory, such as the LIFO, FIFO and average cost method. In addition to reducing complexity, the proposal would make U.S. GAAP more comparable to IFRS.

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Risk & Compliance provides news and commentary to corporate executives and others who need to understand, monitor and control the many risks that can tarnish brands, distract management and harm investors. Its content spans governance, risk and compliance and includes analysis of the significance of laws and regulations, the risks inherent in global expansion and the protective moves taken by companies.